Layoffs, Furloughs and Shutdown at Faraday Future's EV factory

[Adam Varga + 123]

Things are growing grimmer for Faraday Future as the company has had to shut down its electric vehicle factory in California. Some employees have been laid off, others placed on furlough while the startup is trying to secure funding to save the company. It seemed like better days are coming for this company after a large Chinese holding company promised a massive $2 billion investment, but after a fallout with the investors, the company recently had a lay off employees and cut salaries. 

About 40 people were laid off and 60 were furloughed over the last month, leaving only about 10 managers and directors at the factory. 

[Vlad Kovalenko + 115]

Funny how a company that got a few billion injected from the start and  employees with a strong background in automotive technology fail that strongly. Probably wasn't a good timing for them. Bad marketing too. I think a lot of these new EV startups will fail simply because they are too late. 

[Brian W + 78]

Hundreds of car companies have failed all around the globe since the invention of the automobile. Tesla surviving all these years makes it an exception, not the rule. Tesla is financially fighting for survival and likely will be for the next few years. Let's not forget they've got $10+ billion in debt and have burned through billions of dollars of investor money to get to where they are today. The company has been on the brink of bankruptcy at least twice and was saved by cash injections to the tune of billions of dollars. And it has been carried by investors pretty heavily through some pretty crazy financial and managerial blunders.

[BlackTortoise + 103]

They didn't have a good plan from the very beginning. They put too much tech on the first model, developing the useless FFZero1 batmobile concept. Going for broke with a 1-million-square-foot factory in Nevada when they only planned to make 10,000 a year of the $300,000 FF91 crossover. They acted like a $10 billion car company when they only had a few billion.

[Brian W + 78]

Faraday always sounded like they were trying to build the perfect vehicle instead of just getting something "good enough" into production. Eventually, you have to just start building something and bringing in some kind of cash. Felt like they had no urgency, and they were completely unprepared once funding started drying up.